19B-4.005: Maximum Account Balance Limit
PURPOSE AND EFFECT: To amend the maximum account balance limit of a beneficiary’s advance payment contract to include the new tuition differential fee plan and to update terminology.
SUMMARY: This rule change amends the Florida Prepaid College Plan maximum account balance limit of a beneficiary’s advance payment contract to include the new tuition differential fee plan.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 1009.971(1), (4), (6) FS.
LAW IMPLEMENTED: 1009.98 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: November 19, 2007, 2:00 p.m.
PLACE: Suite 210, Hermitage Building, 1801 Hermitage Boulevard, Tallahassee, Florida
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Thomas J. Wallace, Executive Director, 1801 Hermitage Boulevard, Suite 210, Tallahassee, Florida 32308, telephone (850)488-8514
THE FULL TEXT OF THE PROPOSED RULE IS:
19B-4.005 Maximum Account Balance Limit.
(1) No change.
(2) For purposes of the maximum account balance limit, the redemption value of an advance payment contract for:
(a) Tuition, and local fee, and tuition differential fee plans shall be the most expensive lump-sum contract price for the university then-current average amount of tuition, university and local fee and university tuition differential fee plans, as determined annually by the Board’s actuary respectively, charged by the state universities or community colleges for the number of semester credit hours reflected in the contract.
(b) Dormitory plans shall be the most expensive lump-sum four (4) year dormitory contract price (8 semesters) as determined annually by the Board’s actuary then current average of the state university dormitory fees for the dormitories specified for inclusion in the Prepaid Program and the number of semesters reflected in the contract.
(3) If the Board receives an application for an advance payment contract or an additional plan as an addendum to an advance payment contract for a beneficiary and the sum of the redemption value of that application’s benefit(s) contract, the redemption value of any existing advance payment contract for that beneficiary and the account balance of an Florida College Investment Plan account in the Florida College Investment Plan for that beneficiary exceeds the maximum account balance limit, the Board will notify the purchaser that the Board cannot accept the application.
Specific Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98, 1009.981 FS. History–New 11-27-02, Amended 12-28-03,________.